J.P. Morgan harnesses blockchain for debt issuance amid digital asset adoption boost

Dec 11 (Reuters) - J.P. Morgan said connected Thursday that it issued a U.S. commercialized insubstantial for Galaxy Digital Holdings connected the Solana blockchain, ​marking an important measurement successful the broader organization adoption of integer assets.

Cryptocurrency ‌exchange Coinbase Global and concern absorption steadfast Franklin Templeton purchased the commercialized paper, a abbreviated word and ‌unsecured indebtedness instrument.

The woody is among the earliest that uses blockchain for the contented and work of securities, which J.P. Morgan called a "global milestone", arsenic accepted concern begins to intersect with the caller technology.

The indebtedness woody is worthy $50 million, according to a ⁠person acquainted with the matter.

Blockchain ‌platforms, specified arsenic Solana which was founded successful 2017 and launched its mainnet 3 years later, person seen a keen involvement from ‍the bequest concern institutions owed to their precocious velocity and debased transaction costs.

The "landmark transaction is an important measurement toward gathering the aboriginal of finance, demonstrating organization adoption of integer assets ​and our capableness to securely bring caller instruments on-chain successful a analyzable ineligible ‌and regulatory situation via Solana," said Scott Lucas, Head of Markets Digital Assets astatine J.P. Morgan, successful a statement.

Prior issuances connected J.P. Morgan's private, permissioned blockchain level see a municipal securities offering for the City of Quincy successful April 2024 and a U.S. commercialized insubstantial issuance for Oversea‑Chinese Banking Corporation successful August 2025.

"In the ⁠first fractional of adjacent year, we mean to ​build connected this momentum by exploring however this ​structure and J.P. Morgan's relation successful it tin beryllium expanded, not conscionable successful presumption of the capitalist and issuer basal but besides information ‍type," Lucas said.

J.P. Morgan ⁠acted arsenic the arranger successful the woody and created the on-chain USCP token. Both the issuance and redemption proceeds volition beryllium paid successful USDC, ⁠a stablecoin issued by Circle.

Stablecoins are cryptocurrencies designed to way the worth of a real‑world currency, typically ‌the U.S. dollar.

(Reporting by Pritam Biswas successful Bengaluru and Anirban Sen ‌in New York; Editing by Shailesh Kuber)